Do Hospital donated EHR systems have tax implications?

In their email newsletter on Wednesday, the Davis Wright Tremaine law firm suggested that there may be tax consequences to physician practices who accept EHR systems from hospitals. While allowed under DHHS rules that created a safe harbor for such a transaction, it is up to the IRS to rule on whether these donations subject the recipient physicians to taxable income.

While the firms suggests a possible work around, clearly this is a situation that you need to review in detail with your tax advisor, and perhaps with the donating hospital as well to insure that everyone is viewing the donation the same way. This is not a time to “do it yourself”.